"[We] afforded [them] 10 days to respond. The entities have either failed to respond to this request or have failed to confirm that their funeral policies are underwritten by a registered long-term insurance company," the FSB said. "These entities will most likely continue to conduct unregistered insurance business and collecting money from the public. Since these policies are not underwritten by a registered insurance company, it cannot be guaranteed that the 'policyholders' will receive their benefits should they submit a claim," the FSB warned.
"This conduct amounts to running unregistered insurance businesses, thus breaching the provisions of the Long-term Insurance Act 52 of 1998." "Entities (including their owners) that breach the provisions of the Long-term Insurance Act 52 of 1998 may be subject to a fine or imprisonment upon conviction."